The present invention relates to data or transaction cards containing semiconductor processors and/or memory chips.
Such cards are commonly referred to as chip cards (or smart cards). They are typically wallet-size and contain a microchip. Often, there are electrical contacts on the surface of the card through which communications are made between an external chip card device and the semiconductor chip, but there are also wireless chip cards in which communication is made using a wireless transceiver located within the card.
One of the widespread uses of chip cards today is as a stored-value card which contains monetary value in the microchip embedded in the card. For example, each time a consumer uses a chip card in a vending machine, the amount of the purchase is deducted from the cash balance stored in the microchip on the card. One application for such stored-value cards is eliminating the need for people to carry around small coins or bills and speeding up the time it takes to consummate small cash transactions.
Chip card systems divide broadly into open or closed systems. Closed systems limit chip card usage to particular chip card readers. For example, a long-distance carrier may offer chip cards that only operate their long-distance equipment. Open systems (e.g., VisaCash) operate on a wider variety of chip card readers.
Often chip cards include advertisements permanently printed on their body. For example, a long distance calling card may feature a printed image of the long distance carrier's trademark.